Bitcoin and Ethereum Price Forecast – Consolidation Continues, Breakout Imminent
A couple of days back, we had said that we should be expecting a breakout in the bitcoin prices and that day would be crucial for that. We had based this comment considering the volatility that we have come to expect in these markets over the last few months. Little did we expect that 3 days later, we are still within the same range as before and the bitcoin prices are in a kind of consolidation phase that we have not seen before over the past few months. The prices have been trading between $3800 and $4000 for the past 3 days as the market is yet to make up its mind on which way it wants to go.
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Bitcoin Prices Looking to Breakout
The crackdown on the bitcoin industry has clearly jolted the traders and the investors and it is the speculators who seem to be most affected. They are the ones who have been buying the bitcoins with eyes closed in the hope of making a lot of money overnight. They have been caught off guard by the action of the Chinese regulators and they do not seem to be convinced yet to return back to the bitcoin market just yet. They would like to see more cues of a recovery in the prices before they commit themselves again and till then, we are likely to see the consolidation continue.
The Ethereum market has also been following the bitcoin template and based on that, we are seeing the prices consolidate between the $280 and $300 region over the past few days. This is also set to continue in the short term until the traders decide which direction they would want to go.
Forecast
Looking ahead to the rest of the day, this is the best time to stay away from the markets. The consolidation is an indication that the market is digesting all the information before it decides the next direction and it is important to wait for the market to decide the direction and trade the breakout. The breakout is likely to be strong and so trades have to keep their ammunition ready.
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This article was originally posted on FX Empire